The China-EU Relationship: Trade but Verify
- Autores: Alan Riley
- Localización: Notes internacionals CIDOB, ISSN-e 2013-4428, Nº. 204, 2018, págs. 1-5
- Idioma: inglés
- Enlaces
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Resumen
The Communist Party injects such dysfunctionalities into the Chinese economy and state system that China threatens both its own economic well being and security and that of the EU and US.
The danger of Chinese economic policy amounting to ‘eating the future’ is underlined by the fact that in 2015 local and central government and corporate debt amounted to 283% of GDP.
All the supposed independent state agencies, all state owned enterprises and all private businesses of any importance, all media organisations and virtually all the banks, comply with the directions of the Chinese ‘Party-State’.
The policy of maintaining China’s growth at around 6% rapidly ramped up Chinese indebtedness to 283% of GDP and resulted in huge levels of dumping on global markets, increasing trade friction with the US and the EU.
Given the capacity of the Party to control Chinese entities through bank finance, direct appointment and party committees, there is a compelling argument for limiting Chinese ownership or control in strategic sectors such as telecommunications, energy and transport firms.
The EU needs to develop an effective response to threats posed by Chinese trade and investment policies.
An effective system of foreign investment review should include review of critical sectors such as energy, transportation, telecommunications, finance and defence.
